China's offline consumption showed continued improvement in October, with a rebound in spending on life services, fueling the sustained vitality of retail businesses.
According to the latest data from the State Information Center, the offline consumption index for October increased by 8.2 percent year on year, up 2.9 percentage points from the previous month, indicating a steady recovery in offline consumption for the second consecutive month.
The index on life services consumption for October grew by 12.7 percent year on year, an increase of 1.7 percentage points compared to September. Specifically, the accommodation, leisure and entertainment, and catering sectors grew by 17.9 percent, 14.5 percent, and 12.2 percent, respectively.
Driven by the expansive trade-in policy, online retail sales of home appliances grew by 40.2 percent year on year in October, with its growth rate exceeding 40 percent for the second consecutive month. Data from various e-commerce platforms showed that in October, China's southwest region experienced significant growth in sales of 3C digital products through the trade-in program, with sales of interchangeable lens cameras, action cameras, and learning devices all more than doubling.
"In November, consumers from more than 90 percent of rural areas nationwide participated in the trade-in program. An increasing number of consumers began upgrading to AI-powered electronic products. The transaction value of AI-powered learning devices surged more than 10 times year on year, while sales of AI smartphones and AI smart glasses both saw over 100 percent growth," said Ruo Huyi, head of 3C Digital Services at JD.com, one of Chinese leading e-commerce companies.
The China retail prosperity index, a barometer of retailers' expectations for the sector, stood at 51 percent in November, an increase of 0.2 percentage points year on year, according to the data released by China General Chamber of Commerce on November 6.
Indices for goods-based operations, leasing operations, and e-commerce all remained in the expansion zone, signaling a continued increase in consumer spending and a rebound in retail business confidence.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
"With the implementation of existing policies and the continuous rollout of more incremental policies, market expectations have improved steadily. The vitality of microeconomic entities has further increased, and the potential and driving force of residents' consumption continue to be unleashed. The positive trend of economic recovery is expected to be further consolidated," said Chen Xi, an assistant research fellow of the Academy of Macroeconomic Research of the National Development and Reform Commission.
China sees reviving consumer market, retail businesses in October
